Cognis’ Q1 Results Show Significant Improvement

Published on 2004-06-22. Author :
SpecialChem

In the first three months of 2004, sales of Cognis group went up by
3.7% to 777 million euros. Adjusted for foreign currency effects,
sales rose 9.7% in the first quarter. The increase was due to higher
sales from almost all of the global specialty chemicals supplier?s
Strategic Business Units (SBUs), with Nutrition & Health, Functional
Products and Care Chemicals performing particularly well.

First quarter sales from Oleochemicals increased by 1.6% to 252
million euros. Disregarding the effect of currency fluctuations,
sales rose even more sharply, up 6.9%. This positive development was
mainly attributable to higher sales of primary surfactants, fatty
alcohols and fatty acids and partially offset by decreased glycerin
sales due to a significant decline in sales prices.

The Functional Products SBU recorded overall sales of 191 million
euros in the first three months of 2004. This represents gross growth
of 30 million euros or 18.6% on the corresponding period in 2003.

Approximately 25 million euros of this increase was attributable to
the acquisition of the Laporte Performance Chemicals business in the
second quarter of 2003. Adjusted to take into account exchange rate
fluctuations sales grew by 28.0%.

Thanks to stable sales prices and increased sales volumes, the Care
Chemicals SBU increased its sales by 1.4% to 145 million euros in the
first quarter of 2004. Ignoring effect of currency exchange rates,
sales increased by 6.3%.

Sales of the Process Chemicals division fell by 3.6% to 106 million
euros in the first quarter of 2004, primarily because of unfavorable
foreign exchange rates. However, leaving aside this factor, sales
actually increased by 1.8%.

Strong sales growth in the first quarter of 2004 meant the Nutrition
& Health SBU was able to improve its sales by 5.6% to 76 million
euros. The underlying figure adjusted for currency fluctuations was
up 11.1%. Increased sales in the dietary supplements market of CLA
(conjugated linoleic acids), the pharmaceutical and healthcare market
and higher sales of carotenoids and sterols, were the prime factor
behind this increase, as sales from the food technology business
declined slightly.

About Cognis:

Cognis is a worldwide supplier of innovative specialty chemicals and
nutritional ingredients. It employs 8,500 people, and has production
sites and service centers in almost 30 countries. The company has
dedicated its activities to a high level of sustainability and
delivers natural source raw materials and ingredients for food,
nutrition and healthcare markets, and the cosmetics, detergents and
cleaners industries. Additionally, Cognis provides solutions for a
number of other industries, such as coatings and inks, lubricants,
textiles and plastics, as well as agriculture and mining.

Cognis is owned by private equity funds advised by Permira, GS
Capital Partners, and Schroder Ventures Life Sciences. In 2003,
Cognis recorded sales of 2.95 billion euros and a Recurring EBITDA
(earnings before interest, taxes, depreciation, amortization and
exceptional items) of 312 million euros.